The Jordanian sectoral linkages, leading sectors and import leakages -An empirical and strategic study-

The main objective of this paper is to structure and quantify a simple input-output model, to derive the various sectors forward and backward linkages, and to identify the leading sectors of the Jordanian economy. This is besides, quantify the sectoral import leakages, and hence, identify these activities that have a higher potential for strategic import substitution policy. This paper and its contents considered the first modelling attempt to derive and calculate various sector linkages and import leakages in the economy. That said, such results are of vital important for rational policy making, and for optimal allocation of limited investment resources among various sectors of the economy, to achieve more balanced and sustainable socioeconomic development, through time.Furthermore, the paper has derived various sectoral import leakages. This is very significant indicators for putting forward more realistic future import substitution strategies and policies. Such import substitution strategies would be based on these derived import leakages factors and sectoral comparative advantages, amongst others.The empirical solutions of the used models are based on series of input-output tables that have been structured and built for the Jordanian economy as an upper-middle income developing economy. However, the basic fact on setting up this approach, here, was that the series of these used input-output tables, i.e. domestic, total and import tables, are built based, as far as possible, on independent Jordanian data of 2006, together with full use of the existed various Jordanian economic surveys and published data.